Airline battle to continue, says O'Leary

RYANAIR boss Michael O'Leary today warned that the bloodbath in the lowcost airline industry would continue this year as more European airlines are forced to the wall.

Speaking as the Irish carrier launched six new routes in a major expansion at Luton, O'Leary added that it would be Ryanair turning the screw on the rest of the sector by continuing to grow.

He said: 'The bloodbath will continue as competitors will lose money and go out of business. The problem for all of our competitors is that the lowest priced operator keeps expanding. It's a bit like Tesco. Ryanair is the Tesco of the airline industry.'

Italian low-cost operator Volare became the latest victim in the battle among no-frills operators.

Meanwhile, Swiss announced 1,000 job cuts and slashed routes yesterday as it unveiled its third major restructure since its formation in 2001. The airline is being courted by neighbour Lufthansa over a possible takeover after being battered by low-cost competition.

Swiss' shares were suspended earlier this week ahead of the restructuring announcement, fuelling speculation that a deal with Lufthansa was set to be unveiled.

A Swiss spokesman denied a deal was imminent: 'In the airline business everybody speaks to everybody else. At the moment we are concentrating on getting back into the black.'

O'Leary said UK holiday company MyTravel has also switched some of its low-cost aircraft back on to charter routes. 'It's happening just as we said it would,' he added.

Ryanair began flights on six routes to Europe from Luton today. It plans 12 routes in total from the Bedfordshire airport, traditionally the home of easy- Jet, following a fierce row over access charges with rival airport Stansted.

Ryanair claims to have taken record bookings for the six new routes. O'Leary added he 'couldn’t care less' about any reaction by easyJet. 'It's like waiting for a reaction from a dead sheep,' he said.